The Government Development Bank for Puerto Rico will host talks with its creditors on potential restructuring of its debt on Friday, ahead of a Dec. 1 deadline to repay $347 million in debt service. The private conversation will be held in New York and will focus on a restructuring plan the commonwealth has proposed, a spokesman for the GDB said Thursday. While Puerto Rico prepares to make its case to the U.S. Senate Judiciary Committee regarding debt relief ahead of a Dec. 1 hearing, conversation about federal support for the debt-laden territory is focusing on potential for some type of fiscal control board for the island, analysts said. The Puerto Rico legislature passed legislation to establish a local board, but a federally authorized board is also under consideration. A Puerto Rico restructuring would be the largest-ever in the $3.6 trillion municipal-bond market, surpassing Detroit's record bankruptcy filing in July 2013, which involved about $8 billion of bonded debt. A Puerto Rican agency defaulted on a $58 million debt payment on Aug. 3, the first-ever default for the island, because lawmakers failed to allocated funds in a budget crunch. Also read: 3 things to know about Puerto Rico’s debt crisis
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